Huawei India sent Rs 750 crore to parent firm even as revenues fell: Report

  08 July 2022

After the Enforcement Directorate on Thursday said that phonemaker Vivo remitted about Rs 62,476 crore of its turnover to China between 2017 and 2021 to avoid paying taxes in India, the I-T department has now accused Huawei's Indian unit of repatriating large amounts to the parent company, a news report said.

Huawei Telecommunications India repatriated nearly Rs 750 crore to its Chinese parent company in the form of dividends for at least two financial years to reduce its taxable income in India "even when its revenue was reducing drastically", the I-T department said, according to a report in The Economic Times.

 The I-T department had frozen bank accounts of Huawei India in February this year after it found alleged manipulation of account books for reducing taxable income in the nation after conducting raids at its premises.

Huawei had denied any wrongdoing and in its petition to the Delhi High Court, it said that the attachment of the accounts had affected the company's business.

The court in April had stayed the provisional attachments of Huawei's bank accounts and trade receivables of over Rs 1,500 crore and sought the tax department's plea. In its response, the I-T department detailed the charges against Huawei.

The I-T Department, in its affidavit, claimed it had "incriminating material" against the Chinese phonemaker. The department said Huawei's petition in the HC was "a ploy raised on frivolous grounds just to obstruct departmental proceedings and to avoid consequential payment of taxes," reported ET.

Source: Business Standard